BTIG analyst Ryan Zimmerman maintained a Buy rating on Xtant Medical Holdings yesterday and set a price target of $2.00.
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Ryan Zimmerman has given his Buy rating due to a combination of factors that highlight Xtant Medical Holdings’ strong financial performance and strategic initiatives. The company reported impressive revenue growth of 18.3% year-over-year, surpassing both BTIG and consensus estimates, largely driven by a significant increase in Orthobiologics sales. Additionally, Xtant Medical’s gross margins improved, and the company generated positive adjusted EBITDA, further supporting its financial health.
Moreover, Xtant Medical’s guidance for fiscal year 2025 was raised, reflecting confidence in continued growth, with expectations of increased licensing revenue in the latter half of the year. The planned sale of non-core assets, including Coflex and CoFix products, is anticipated to bolster the company’s balance sheet and reduce debt. Despite some concerns regarding cash balance and declining Spinal Implants sales, Xtant Medical’s valuation remains attractive, trading at a discount compared to its peers, which supports the Buy rating.